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For the Middletown Corporation stock, last year with a risk-free rate of 2.6% and a market risk-premium of 7.4%, the expected rate of return was
For the Middletown Corporation stock, last year with a risk-free rate of 2.6% and a market risk-premium of 7.4%, the expected rate of return was 10.4%. This year, the market-risk premium decreases by 1% but the stock's beta and the risk-free rate remain the same. What is this year's expected rate of return in percent (to two places)?
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